AGRICUL T URAL GUARANT E E F UND POOL EDNA A. ATIENZA - - PowerPoint PPT Presentation

AGRICUL T URAL GUARANT E E F UND POOL

EDNA A. ATIENZA

Executive Director

F

• rma l L

e nding I nstitutio ns Pe rc e ptio n

• f L

e nding to Sma ll F a rme rs:

• No n-b a nka b le
• Hig h Cre dit Risk
• Hig h Co st o f

Se rvic e De live ry I nfo rma l L e nde rs pro vide :

• Re a dily

a va ila b le b ut Hig h Co st L

• a n

F a rme rs la c k a c c e ss to susta ina b le fina nc ia l se rvic e s

4

AGRICUL T URAL GUARANT E E F UND POOL (AGF P)

E ST ABL ISHME NT T he AGF P was e stablishe d by vir tue of Administr ative Or de r

• No. 225- A issue d
• n May 26, 2008.

MANDAT E

• Mitigate the r

isks involve d in agr ic ultur al le nding thr

• ugh the

pr

• vision of guar

ante e

• E

nc our age par tne r le nding institutions to e xte nd unse c ur e d agr ic ultur al food c ommodity pr

• duc tion loans to small far

me r s and fishe r folk (SF F ) L E AD AGE NCY De par tme nt of Agr ic ultur e INST IT UT IONAL PROGRAM MANAGE R L and Bank of the Philippine s

NG 84%

GOCCs/GFIs 10%

Agri‐Agra Law 6%

F UND COMPOSIT ION

NG – National Gove r nme nt GOCCs – Gove rnme nt Owne d and Controlle d Corporations GF Is – Gove r nme nt F inanc ial Institutions AGF P c an guar ante e up to P15 B

Gove r ning Boar d: E

xe rc ise s dire c tio n a nd supe rvisio n,

• ve rse e

imple me nta tio n a nd a da pt stra te g ie s to e nsure susta ina b ility

• f

AGF P

Composition:

Cha irpe rso n: Unde rse c re ta ry, De pt. o f Ag ric ulture Me mb e rs: Unde rse c re ta ry, De pt. o f Ag ra ria n Re fo rm Unde rse c re ta ry, Na tio na l Anti-Po ve rty Co mmissio n

• Asst. Se c re ta ry, De pt. o f F

ina nc e E xe c utive Vic e Pre side nt, L ANDBANK E xe c utive Dire c to r, Ag ric ultura l Cre dit Po lic y Co unc il Ac a de me Re pre se nta tive Pa rtne r L e nding I nstitutio ns’ Re pre se nta tive E xe c utive Dire c to r, AGF P (No n-vo ting )

Or ganization and Manage me nt

5

Pr

• gr

am Manage me nt Committe e (PMC):

Assists the Go ve rning Bo a rd in the e xe c utio n o f its func tio ns

Composition:

Cha irpe rso n: L ANDBANKRe pre se nta tive Vic e -Cha irpe rso n: Re pre se nta tive , Ag ric ultura l Cre dit Po lic y Co unc il Me mb e rs: Re pre se nta tive , L ANDBANK Re pre se nta tive , De pa rtme nt o f Ag ric ulture Re pre se nta tive , De pa rtme nt o f Ag ra ria n Re fo rm

Or ganization and Manage me nt

6

Pr

• gr

am Manage me nt Offic e (PMO):

Pro vide s te c hnic a l a nd a dministra tive suppo rt to the Go ve rning Bo a rd a nd in- c ha rg e o f da y to da y o pe ra tio ns.

Composition: He a d: Pro g ra m E xe c utive Dire c to r Divisio ns: Ma rke ting a nd Ac c o unts Ma na g e me nt Divisio n Cla ims a nd Re c o ve ry Divisio n F ina nc e a nd Administra tio n Divisio n I nte rna l Audit Divisio n

Or ganization and Manage me nt

7

F e atur e s of the Guar ante e

PL I - 15% AGF P - 85%



E ligible loans:

• Cr
• p Pr
• duc tion
• Poultr

y Pr

• duc tion
• L

ive stoc k Pr

• duc tion
• F

ishe r y Pr

• duc tion



Guar ante e s all r isk, e xc e pt fr aud on the par t of the PL I



20% r isk- we ighte d by BSP



2% guar ante e fe e pe r annum



85% guar ante e of the pr inc ipal balanc e at the time

• f c laim

L

• ans to SF

F

15% 85% 8

9

Banks Cor ps. F ar me r Or gs. NGOs Coops

E ligible L e nding Institutions

9

BANKS

• 1. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny
• 2. CAME

L S Ra ting o f a t le a st 3

• 3. Pa st Due Ra tio

ne t of valuation r e se r ve, o f no t

mo re tha n 15%

• 4. At

le a st two -ye a r tra c k re c o rd in le nding to fa rme rs

• 5. Ca pita l Ade q ua c y Ra tio o f a t le a st 10%
• 6. Ade q ua te Re se rve Re q uire me nt
• 7. Pro fita b le o n the ye a r pre c e ding the a pplic a tio n

a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line

E ligibility Re quir e me nts

10

COOPE RAT IVE S

• 1. Re g iste re d

with Co o pe ra tive De ve lo pme nt Autho rity (CDA)

• 2. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny
• 3. Pa st Due

Ra tio ne t o f va lua tio n re se rve

• f no t

mo re tha n 25%

• 4. At le a st two -ye a r tra c k re c o rd in le nding to fa rme rs
• 5. Risk-a sse t ra tio (fo r c re dit c o o pe ra tive ) o f no t le ss

tha n 10%

• 6. Co mple te

pa rt

• r full-time

c o re ma na g e me nt te a m

• 7. Pro fita b le o n the ye a r pre c e ding the a pplic a tio n

a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line

E ligibility Re quir e me nts

11

Non- Gove r nme nt Or ganizations (NGOs)

• 1. Re g iste re d

with Se c uritie s a nd E xc ha ng e Co mmissio n (SE C)

• 2. Sa tisfa c to ry c re dit sta nding with c re dito rs, if a ny
• 3. Pa st Due Ra tio ne t o f va lua tio n re se rve o f no t

mo re tha n 25%

• 4. At le a st two -ye a r tra c k re c o rd

in le nding to fa rme rs

• 5. Co mple te

pa rt o r full-time c o re ma na g e me nt te a m

• 6. Ne t

surplus

• n

the ye a r pre c e ding the a pplic a tio n a nd a s o f the time o f a pplic a tio n fo r g ua ra nte e line

E ligibility Re quir e me nts

12

Guar ante e L ine E stablishme nt Guar ante e Cove rage Guar ante e Claims Re c ove r y/ Colle c tion of Subr

• gate d

Re c e ivable s

Pr

• c e ss F

low

13

 PL

Ire q ue sts fo r AGF P Gua ra nte e L ine

• L

e tte r Re q ue st

• Bo a rd Re so lutio n
• Sig na ture Ca rd
• F

ina nc ia l Sta te me nts

• Ce rtific a tio n fro m Cre dito r/ s
• De c la ra tio n o f L
• a n Po rtfo lio
• Ba sic Busine ss I

nfo rma tio n (Busine ss Pro file )

• Re g istra tio n with Re g iste ring E

ntity

• CAME

L S Ra ting

• Pro je c te d re le a se s
• Ce rtific a te o f Go o d Sta nding issue d b y CDA (fo r Co o ps)

 Gua ra nte e L

ine s a re re ne wa b le a nnua lly

 PL

I ma y a pply fo r a dditio na l g ua ra nte e line a t a ny time

E stablishme nt of Guar ante e L ine

14

Re que sts for Cove r age must be :

 Within 60 days fro m lo a n re le a se  Unda ma g e d c ro ps/ c o mmo ditie s a t the

time

• f

e nro lme nt fo r g ua ra nte e c o ve r

 By b a tc h o f PNs

• Re le a se s fo r the mo nth a re e nro lle d within 15 da ys

fro m mo nth e nd

• Ba tc h ma turity da te sha ll b e re c ko ne d fro m ma turity
• f the yo ung e st PN

Guar ante e Cove r age

15

Re que sts for Cove r age must be :



Suppo rte d b y ma ste rlist1 o f e lig ib le b o rro we rs

• E

le c tro nic file to b e sub mitte d b y e -ma il to a g fpc o ve ra g e @ g ma il.c o m using AGF P e nro lme nt te mpla te

• Sig ne d c o py to b e sub mitte d thro ug h c o urie r

1 No n-submissio n within 15 c ale ndar

days fro m date o f payme nt o f

guarante e fe e shall re nde r the c o ve rage null and vo id

2 E

nro lme nt fo rc o ve rage in e xc e ss o f the appro ve d line is c o nside re d mate rialmisre pre se ntatio n and may re sult to re vo c atio n o r te rminatio n o f guarante e line

Guar ante e Cove r age

16

Guar ante e F e e Rate s

Activity Guarantee Period Guarantee Fee Regular ARB Not PCIC Insured PCIC Insured Not PCIC Insured PCIC Insured Palay Production 5 months 0.85% 0.45% 0.45% 0.25% Pineapple (Plant) 23 months 3.85% 1.95% 1.95% 1.00% (Ratoon) 20 months 3.35% 1.70% 1.70% 0.85% Sugarcane (Plant) 14 months 2.35% 1.20% 1.20% 0.60% (Ratoon) 12 months 2.00% 1.00% 1.00% 0.50% Corn 6 months 1.00% 0.50% 0.50% 0.25% Cassava 14 months 2.35% 1.20% 1.20% 0.60% Other short term crops/ commodities 7 months 1.20% 0.60% 0.60% 0.30% Fishpond/ fishcage operations Bangus 8 months 1.35% 0.70% 0.70% 0.35% Tilapia 7 months 1.20% 0.60% 0.60% 0.30% Prawn 8 months 1.35% 0.70% 0.70% 0.35% Crab 8 months 1.35% 0.70% 0.70% 0.35% Catfish 8 months 1.35% 0.70% 0.70% 0.35% Poultry/ Livestock Layer 20 months 3.35% 1.70% 1.70% 0.85% Broiler 3 months 0.50% 0.25% 0.25% 0.15% Goat (breeding) 7 months 1.20% 0.60% 0.60% 0.30% Goat (fattening) 7 months 1.20% 0.60% 0.60% 0.30% Poultry/ Livestock Note: * Milk Production Hog (breeding) 14 months 2.35% 1.20% 1.20% 0.60% Hog (fattening) 7 months 1.20% 0.60% 0.60% 0.30% Cattle (fattening) 8 months 1.35% 0.70% 0.70% 0.35% Cattle (breeding) 11 months 1.85% 0.95% 0.95% 0.50% Carabao (breeding) 15 months 2.50% 1.25% 1.25% 0.65% Carabao (dairy)* 11 months 1.85% 0.95% 0.95% 0.50% Goat (dairy)* 6 months 1.00% 0.50% 0.50% 0.25% Cattle (dairy)* 11 months 1.85% 0.95% 0.95% 0.50%

17

Re fund of Guar ante e F e e s shall be Ne t of T we nty Pe r c e nt (20%)1 administr ative c ost unde r but not limite d to the following c ir c umstanc e s:



E nr

• lme nt for

c ove r age be yond the appr

• ve d loan

c e iling of the c r

• p/ c ommodity;



E nr

• lme nt for

c ove r age be yond the appr

• ve d

guar ante e line of the PL I;



E nr

• lme nt of PL

Is with no appr

• ve d guar

ante e line s.

Guar ante e Cove r age

1E

ffe c tive F e br uar y 1, 2016

18

SAMPL E MAST E RL IST OF BORROWE RS

ID PLI_BRANCH LAST_NAME FIRST_NAME MI BIRTH_DAT E STREET_ADDRESS BARANGAY TOWN PROVINCE ZIP_CODE COMMODITY HECTARAGE_OR_ NO_OF_HEADS PCIC_ INSURED ARB_ BORROWER AMOUNT_O F_LOAN DATE_OF_LOAN_ RELEASE PROMISSORY_ NOTE_NO PN_MATURITY_ DATE SECURITY_OR_ COLLATERAL 1 Cabanatuan Javier Harold E 12/21/1980Mabini Street Labangan San Jose Occidental Mindoro 5100Palay 5Yes No 100,000.00 12/25/2015 123456 3/30/2016None 2 Cabanatuan Marcos Juan T 7/15/1972Rizal Avenue Salvacion Rizal Occidental Mindoro 5200Palay 3Yes Yes 30,000.00 12/25/2015 89763 2/28/2016None 3 Cabanatuan Zapanta Celia J 5/12/1960Boni Drive New Dagupan Calintaan Occidental Mindoro 5300Palay 1No Yes 10,000.00 12/25/2015 98726 2/28/2016None 4 Cabanatuan Zulueta Myrna L 6/6/1970Magsaysay Avenue Panay Sablayan Occidental Mindoro 5500Palay 5Yes No 100,000.00 12/25/2015 76272 2/25/2016None

19

3 4 0 2 2 3 1 5 3 9 X AGFP ABC BANK, INC. GLC No. 2016‐001 P1,827.50 01‐16‐2016

Teller’s Validation

LBP QC CIRCLE EO T1(2DBO ) 01‐06‐2016 15:48 Trxn. Seq. #: 72000 AGFP LOCAL CHECK Payment Clearing Acct. No. 3402‐2315‐47 Partner’s Name ABC BANK, INC.

• G. Line Confirmation No.

2016‐001 Check No. 88888888888 Amount 1,827.50

SAMPLE ONCOLL PAYMENT SLIP

GUARANT E E COVE RAGE

3402- 2315- 39

ACCOUNT NUMBE R

21

22

Re que sts for Guar ante e Claims must be :



F ile d within 60 days fro m b a tc h ma turity da te



Suppo rte d with c o mple te do c ume nta ry re q uire me nts1:

• L

ist o f a c c o unts with re a so n fo r de fa ult

• Duly a c c o mplishe d PNs
• Disc lo sure Sta te me nts
• PL

I s a ffida vit o f no n-pa yme nt

• Duly re c e ive d de ma nd/ c o lle c tio n le tte r issue d b y

the PL I to the b o rro we r

• Sta te me nt o f Ac c o unt o f the b o rro we r
• Pro o f o f o c c urre nc e o f c a la mity, pe st o r dise a se , if

a pplic a b le

• Non-submission of c omple te doc ume nts within 60 days shall r

e sult to non-payme nt of the batc h be ing c laime d.

• Re que st for

c laims payme nt not suppor te d by c omple te doc ume nts will be de e me d not submitte d.

Guar ante e Claims

Payme nt of the guar ante e d 85%:



50%

• a fte r va lida tio n o f e nro lme nt o f a c c o unts



30%

• ne t o f inva lid c la ims a fte r re vie w o f c o mple te

do c ume nts 

20%

• ne t o f re c o ve rie s a nd inva lid c la ims, a fte r fie ld

va lida tio n

 AGF

P payme nt sha ll b e a pplie d to the princ ipa l

lo a n o f the b o rro we r

Guar ante e Claims

23

24

Validation of Guar ante e Claims:



Cla ims re c e ive d within the mo nth sha ll b e c o nside re d

• ne Ba tc h o f Cla ims.



20% o f b a tc h c la ime d – fo r fie ld va lida tio n



10% inva lid a c c o unts will re nde r who le b a tc h inva lid

Claims found invalid afte r validation:



T re a te d a s Ac c o unts Re c e iva b le b y AGF P fro m the PL I



Must b e re mitte d to the AGF P within 30 da ys fro m No tic e , o the rwise pe na ltie s sha ll a pply

Guar ante e Claims

24

INVAL IDAT ION OFINDIVIDUALACCOUNT S



De fe c tive PNs

• Sig na ture o n PN diffe rs fro m sig na ture o n a no the r do c ume nt
• Alte ra tio ns/ c o rre c tio ns/ e ra sure s no t c o unte rsig ne d b y b o rro we r
• Ma te ria l disc re pa nc ie s o n da te s o n PN (da te o f re le a se is la te r

tha n ma turity da te )

• No sig na ture
• Unda te d (lo a n re le a se a nd/ o r ma turity da te )
• Amo unt o f lo a n no t indic a te d
• L
• a n a mo unt in fig ure s is diffe re nt fro m lo a n a mo unt in wo rds



L

• a n a mo unt o f PN diffe rs fro m a mo unt c o ve re d pe r Ma ste rlist

sub mitte d



I ne lig ib le b o rro we r (no t SF F )



L

• a n no t e nro lle d fo r c o ve ra g e



L

• a n is se c ure d b y RE

M/ CM o r o the r c o lla te ra ls

INVAL IDAT ION OFAL LCL AIMS IN T HE BAT CH



Re struc ture d L

• a ns



Se c ure d L

• a ns



Willful misre pre se nta tio n

RE ASONS F OR INVAL ID CL AIMS:

25

26

De e d of Subr

• gation with Colle c tion Agr

e e me nt

 Rig hts, c la ims a nd de ma nds o f the PL

I a g a inst the b o rro we rs a re de e me d sub ro g a te d to AGF P upo n a ppro va l a nd pa yme nt o f c la ims b y AGF P a nd re c e ipt b y the PL I .

PL I must r e mit to AGF P:



85% o f a ny c o lle c tio n ma de



No t la te r tha n 15 da ys a fte r re fe re nc e mo nth

(Co lle c tio n fo rthe mo nth o f Oc to be rmust be re mitte d no t late rthan No ve mbe r15)

 30% Re c ove r

y E ffic ie nc y is r e quir e d for r e ne wal of Guarante e L ine .

 30% is base d on c laims paid mor

e than 6 months

Re c ove r y/ Colle c tion

26

RE COVE RIE S/ COL L E CT IONS

3402- 2315- 47

ACCOUNT NUMBE R

27

Commodity Approved Loan Ceiling Amount Unit Ampalaya Direct Seeding Seedling 90,000.00 115,000.00 Per hectare Baguio Beans 50,000.00 Per hectare Black Pepper 30,000.00 Per hectare Brocolli 86,000.00 Per hectare Cabbage 92,000.00 Per hectare Carrots 70,000.00 Per hectare Cassava 50,000.00 Per hectare Cattle Breeding Fattening 20,000.00 22,000.00 Per Animal Cauliflower 80,000.00 Per hectare Celery 90,000.00 Per hectare Corn 42,000.00 Per hectare Cucumber 45,000.00 Per hectare Eggplant 96,000.00 Per hectare Free‐range chicken Broiler Layer 10,000.00 86,000.00 Per 100 birds Garlic 113,000.00 Per hectare Ginger 70,000.00 Per hectare Hog Breeding Fattening 80,000.00 15,000.00 Per Animal Honeydew 60,000.00 Per hectare

APPROVE D L OAN CE IL ING

28

Commodity Approved Loan Ceiling Amount Unit Lettuce 75,000.00 Per hectare Malunggay Direct Seeding Cuttings 64,000.00 70,000.00 Per hectare Melon 60,000.00 Per hectare Milkfish In Fishpond In Cages 100,000.00 250,000.00 Per hectare Per 400 sq.m. Mongo 22,000.00 Per hectare Okra 68,000.00 Per hectare Onion (red) 152,000.00 Per hectare Onion (white) 151,000.00 Per hectare Palay Inbred Hybrid Inbred – Seed Production Hybrid – Seed Production 50,000.00 60,000.00 50,000.00 65,000.00 Per hectare Papaya 112,000.00 Per hectare Patani 40,000.00 Per hectare Patola 46,000.00 Per hectare Peanut 30,000.00 Per hectare Pechay 30,000.00 Per hectare Pineapple Plant Ratoon 298,000.00 230,000.00 Per hectare Pole Sitao (Stringbean) 106,000.00 Per hectare Potato 143,000.00 Per hectare

APPROVE D L OAN CE IL ING

29

Commodity Approved Loan Ceiling Amount Unit Radish 50,000.00 Per hectare Sayote 50,000.00 Per hectare Seaweed Fixed‐bottom Monoline Floating Long‐line 52,000.00 65,000.00 Per hectare Shallot 35,000.00 Per hectare Snap beans 46,000.00 Per hectare Sorghum 35,000.00 Per hectare Soybeans 40,000.00 Per hectare Squash 46,000.00 Per hectare Sugarcane Plant Ratoon 60,000.00 45,000.00 Per hectare Sunflower 33,000.00 Per hectare Sweet Peas 100,000.00 Per hectare Sweet Potato 50,000.00 Per hectare Sweet/Hot/Bell Pepper 70,000.00 Per hectare Taro (Gabi) 35,000.00 Per hectare Tomato 72,000.00 Per hectare Turnips 40,000.00 Per hectare Upo 30,000.00 Per hectare Vegetables (Multicrop) 53,000.00 Per hectare Watermelon 48,000.00 Per hectare White Potato 60,000.00 Per hectare

APPROVE D L OAN CE IL ING

30

As of De c e mbe r 31, 2015

Guarantee Coverage P 31.1 billion Total Claims Paid P 895.3 million Recoveries/Collections P 247.7 million Guarantee Fees Collected P272.5 million

31

As of De c e mbe r 31, 2015 - Banks

Guarantee Coverage P 17.2 billion Total Claims Paid P 571.4 million Recoveries/Collections P 213.2 million Guarantee Fees Collected P153.6 million

32

As of Mar c h 31, 2016

Guarantee Coverage P 32.4 billion Total Claims Paid P 962.7 million Recoveries/Collections P 301.3 million Guarantee Fees Collected P283.3 million

33

As of Mar c h 31, 2016 - Banks

Guarantee Coverage P 18.2 billion Total Claims Paid P 631.2 million Recoveries/Collections P 264.3 million Guarantee Fees Collected P161.7 million

34

35

Guar ante e d L

• ans – as of Mar

c h 31, 2016

T

• tal Cove r

age : P32,395.01 M

Banks Non- Banks

229,379 166,673 235,706 42,489 55,071 81,111 42,652 54,495 41,528

‐ 50,000 100,000 150,000 200,000 250,000 2013 2014 2015 Guarantee Claims Recoveries Guarantee Fees

36

3- Ye ar Compar ative Guar ante e Claim Payme nts, Colle c tions/ Re c ove r ie s and Guar ante e F e e s Colle c te d

– Automatic Guarantee Program (AGP) of up to 50% of Lending Institutions’ credit line with LBP and soon with BPI. – Validators will be hired and deployed to areas with high concentration of coverage. – Partner Lending Institutions (PLIs) may request for briefing of their point persons, preferably jointly with

• ther PLIs.

– Faster processing of claims payment with ongoing automation – Deed of Subrogation with Collection Agreement (DSCA) have been incorporated in the Guarantee Line Agreement

37

Othe r Update s

38

T hank you.